F&I

Making a Vehicle Purchase Rises on Consumer Wish Lists

November 22, 2011
• by Staff

Purchasing a new or used vehicle is rising on consumer wish lists, which could mean good things for dealers for the remainder of the year and next. Even more important, car shoppers indicated in CNW Research’s consumer surveys that they are boosting their budget to make a vehicle purchase.

In CNW’s Wish List Survey, purchasing a new vehicle bounced back from its recessionary-level ranking to No. 9 on the list of intended big-ticket purchases. The last time buying a new car ranked No. 9 was in the firm’s 2005 study, which measured purchase intentions for 2006. After that year, new-vehicle purchase intentions fell to No. 11 and No. 12.

Additionally, CNW reported that the number of Key Market consumers who say they will buy a new car increased 9 percent from a year ago to 16.3 percent.

“For used vehicles, the picture is equally rose,” wrote CNW’s Art Spinella in the company’s monthly newsletter. “In the 2010 survey for 2011, a used-vehicle acquisition was ninth on the wish list. For next year: A notch upward to eight with a 20 percent boost in Key Market intentions.”

The Bandon, Ore.-based research firm also reported that consumers planning on making a vehicle acquisition are bolstering their budgets to do so. New-car intenders are boosting their budget by 2.7 percent, while used intenders say they are increasing their budget by 5.6 percent.

“It should be noted, however, that on the new-car side, getting a significant discount is expected by nearly 90 percent of intenders.”

Software experts Jason Barrie and Marie Knight share advice for dealers and F&I professionals seeking new ways to drive production and enhance customer service in a department whose future is difficult to predict.